The company's Power Systems and Distribution segments were key drivers of this success, resulting in Cummins' revenues steadying at $8.5 billion for the third quarter, mirroring the same period in 2023, with a slight 1% dip in North American sales and a 2% rise internationally.
Cummins reported a net income of $809 million, a marked increase from last year's $656 million. The quarter's tax rate stood at 19.2%, inclusive of $36 million, in favorable discrete tax items. The previous year's third quarter had incurred Atmus separation-related costs amounting to $26 million.
We are making significant strides in our Destination Zero strategy by delivering cutting-edge technologies to our clients, bolstering our foothold in critical markets, and enhancing our financial outcomes."
Chair and CEO
Cummins
EBITDA for Q3 2024 was reported at $1.4 billion, or 16.4% of sales, a notable increase from $1.2 billion, or 14.6% of sales, in the prior year, with last year's figures also including Atmus separation costs.
The 2024 Outlook
Cummins maintains its full-year 2024 revenue guidance, projecting a range from a 3% decrease to flat. The company anticipates EBITDA to hit approximately 15.5%, the upper limit of their prior guidance.
The company remains committed to generating robust operating cash flow and delivering shareholder returns, aiming to return 50% of operating cash flow to shareholders. Cummins will prioritize reinvestment for profitable growth, dividends, and debt reduction in the near term.
Jennifer Rumsey added, "We have adjusted our 2024 profitability expectations to the higher end of our range due to ongoing enhancements in our Power Systems and Distribution segments."
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